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- BitMEX, a cryptocurrency derivatives platform, has revealed its total Bitcoin (BTC) reserve balance
- BitMEX claims to have 110,090 Bitcoins in its possession, valued at $5.23 billion at the time of writing
- The company has provides tools that anyone can use to check the company’s obligations and reserves against the blockchain
BitMEX, a crypto derivatives platform, has revealed its complete Bitcoin (BTC) reserve balance and has suggested that other exchanges do the same. BitMEX claims to have 110,090 Bitcoins, valued at $5.23 billion at the time of writing, in a new blog post. The company has provides tools that anyone can use to check the company’s obligations and reserves against the blockchain.
BitMEX expects other platforms to expose their BTC holdings
BitMEX expects that other crypto firms and platforms would follow suit and expose their Bitcoin holdings. Following a $100 million settlement with the US Financial Crimes Enforcement Network (FinCEN) and the Commodity Futures Trading Commission, BitMEX has recently become more transparent (CFTC).
A settlement has been reached with five firms charged with operating the BitMEX crypto derivatives market, according to the CFTC. The order imposes a $100 million civil monetary penalty on the BitMEX entities, with up to $50 million of the penalty offset by payments made or credited by the BitMEX entities in accordance with a Consent to Assessment of Civil Monetary Penalty entered by the Financial Crimes Enforcement Network.
The CFTC charged BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed, as well as the platform’s other operating organizations, with partially operating from the US and serving US consumers without necessary authorization in October of 2020. BitMEX was charged by FinCEN with having insufficient anti-money laundering and client identification safeguards in place.
BitMEX to pay $80 million to settle the acquisitions
Cryptocurrencies hit a new high of $2 trillion in capitalization in April as more investors added digital tokens to their portfolios, but market regulation remains spotty. The five firms accused of running BitMEX agreed to pay $80 million to settle the accusations, with another $20 million on hold pending the outcome of the investigation. BitMEX stated it has taken a number of steps to improve its compliance, but did not admit or refute the conclusions.
In a statement, BitMEX CEO Alexander Höptner said, Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not merely hallmarks of our business – they are drivers of our long-term success.
In October, the Department of Justice charged Arthur Hayes, Samuel Reed, and Benjamin Delo, who co-founded BitMEX in 2014, as well as Gregory Dwyer, the company’s first employee and later head of business development, with violating and conspiring to violate the federal Bank Secrecy Act.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
